OTTAWA – Statistics Canada says the economy saw its largest monthly drop on record in April as it came to a near standstill due to the pandemic, but early indications point to a rebound in May as businesses began to reopen.
The agency says gross domestic product fell 11.6 per cent in April with non-essential businesses shut for the full month following a 7.5 per cent decline in March.
GDP fell in April as COVID-19 shutdowns were in place for a full month. Statscan says GDP shrank 11.6% from March, which was down 7.5% from February. The median of economists' expectations was for a 12.2% decrease, an earlier Statscan flash estimate was for a drop of 11%. pic.twitter.com/QVEYeQwGKh
— Richard Dettman (@rwdettman) June 30, 2020
However, Statistics Canada says its initial flash estimate for May points to growth of 3.0 per cent.
Economists on average expect a drop of 13 per cent for April, according to financial markets data firm Refinitiv.
Manufacturing was down 22.5 per cent in April as many factories either shuttered or greatly reduced capacity in line with public health measures to slow the spread of COVID-19.
The output of the accommodation and food services sector dropped 42.4 per cent in April, as customers replaced eating out with staying in, hitting a sector that saw a 37.1 per cent decline in March.